New Premium Warehouse Set to Boost Hong Kong Air Cargo Growth and Facilitate E-commerce

The tight supply of warehouse space and the e commerce boom have created strong demand for premium warehouses in Hong Kong. A new facility located at Kwo Lo Wan (KLW) in Hong Kong International Airport’s (HKIA) South Cargo Precinct will boost the supply of premium warehouse space in the city by 15 to 20 per cent when it commences operation in 2023.

Reinforcing Hong Kong’s air cargo leadership

HKIA recorded continuous traffic growth in 2017, with all three air traffic categories reaching new annual heights. Last year, HKIA handled 4.94 million tonnes of cargo, representing a 9.2% year on year growth. Together with 112,000 tonnes of airmail handled during the year, the total cargo and airmail throughput of HKIA has exceeded the mark of 5 million tonnes for the first time. Airport Authority Hong Kong (AAHK) is now rolling out a tender for the development and operation of the KLW premium warehouse with the objectives of reinforcing Hong Kong’s air cargo leadership, promoting trade and stimulating additional air cargo flow.

One of the largest premium warehouses in Hong Kong

The new KLW premium warehouse will occupy a site of 5.3 hectares and have an expected gross floor area of approximately 4 million sq ft, making it the third-largest warehouse in Hong Kong. The new KLW facility has high specifications, such as ramp access to most floors, a ceiling height of at least 6.5 metres, and floor loading of at least 350 pounds per square feet to enable the use of large-scale robotics and automation.

Facilitating the growth of e-commerce

The exponential growth of e-commerce, in particular the booming of cross-border e-commerce in China, has created enormous opportunities for express and small parcel airfreight delivery. HKIA is strategically located in the centre of Asia, proximity to the Pearl River Delta and Greater Bay Area. Taking the advantage of HKIA’s excellent airfreight connectivity and efficient 24-hour customs clearance service, the KLW premium warehouse has the competitive edge to capture cross-border e-commerce and its related businesses.

Capturing shipments of high-value temperature-controlled airfreight

The KLW development also serves a superb location for capturing temperature-controlled air transshipments such as high value pharmaceuticals. Since July 2017, HKIA has been recognised as an IATA CEIV Pharma Partner Airport by offering a complete, efficient and high standard end-to-end solution of pharmaceutical handling in airside.

International players invited to tender

Hong Kong and international developers with relevant experience and strong track records are now invited to tender for the KLW development. Interested bidders are encouraged to submit development proposals with vision for the future of the air cargo and logistics industry and plans to realise the vision with tailored design for the warehouse and its facilities. AAHK will judge the tenders on multiple factors rather than bid price alone.

For details on the Invitation of Tender, please visit: http://www.hongkongairport.com/en/airport-authority/tender-notices/KLWDEV#it